Loan program
DSCR rental loansqualified on the property's income.
Finance rental properties based on the property's rental income rather than borrower income. DSCR loans are the preferred financing tool for buy-and-hold investors building long-term wealth through real estate.
Who it fits
What a DSCR rental loanis designed to do.
DSCR (Debt Service Coverage Ratio) loans are long-term investment property loans that qualify primarily on the property's rental income rather than the borrower's personal income. If the property's rental income covers the mortgage payment (a DSCR of 1.0 or higher), the property's cash flow becomes the primary qualification driver — which is why DSCR loans are the go-to financing option for professional landlords, portfolio investors, and self-employed real estate operators. AIRE Lending offers 30-year fixed and adjustable-rate DSCR products with competitive rates and no limit on the number of properties you can finance.
Whether you are purchasing your first rental or your fiftieth, DSCR loans provide the scalability and simplicity that traditional bank financing cannot match.
This program fits
- Buy-and-hold investors building a portfolio of cash-flowing rental properties
- Self-employed borrowers whose income is harder to document through traditional channels
- Investors who have maxed out their conventional loan count (10+ properties)
- Short-term rental (Airbnb) operators seeking long-term financing
- Real estate investors doing cash-out refinances to recycle capital into new deals
Terms at a glance
The numbers,before the paperwork.
Illustrative program ranges, not a current rate quote or offer. Your terms depend on credit profile, experience, the property and leverage, and are confirmed in underwriting. This is not a commitment to lend.
- Interest rate
- 7.0% - 9.5%
- Origination points
- 0.5% - 3%
- Leverage
- Up to 80% LTV
- Term
- 30-year fixed or ARM
- Loan amount
- $75K - $2M
- Minimum credit score
- 660+
- Credit pull at application
- Soft pull only
- Entity required
- Yes (LLC, corporation or trust)
What we'll ask for
What to have readyfor a DSCR rental loan.
Credit and experience
- Minimum credit score: 660+
- Experience: No minimum (first-time landlords welcome)
Eligible property types
- Single-family homes
- Townhouses and condos (warrantable)
- Duplexes, triplexes, and fourplexes
- Small multifamily (5-8 units in select programs)
Additional notes
- Minimum DSCR of 1.0 (some programs allow 0.75 DSCR with rate adjustment)
- Qualification primarily driven by the property's cash flow, not borrower income
- Cash-out refinance available up to 75% LTV
- Borrowing entity (LLC) required; personal guaranty required
- Minimum 6 months reserves (PITIA) typically required
- No limit on number of financed properties
Questions, answered
DSCR rental loans,explained.
What is a DSCR loan and how does it work?
A DSCR (Debt Service Coverage Ratio) loan qualifies based on the property's rental income relative to the mortgage payment. The DSCR is calculated by dividing the monthly rent by the monthly PITIA (Principal, Interest, Taxes, Insurance, and HOA). A DSCR of 1.0 means the rent exactly covers the payment. Most lenders require a minimum DSCR of 1.0 to 1.25 for the best rates.
How does DSCR qualification work?
DSCR loans are underwritten primarily on the property's rental income — that is what makes them attractive for self-employed investors and portfolio builders. The property must generate enough rental income to cover the debt service at the program's minimum DSCR ratio (typically 1.0 or higher). Specific document requirements are confirmed during underwriting and vary by program.
Can I use a DSCR loan for a short-term rental or Airbnb?
Yes, many of our lending programs accept short-term rental income for DSCR qualification. You will typically need to provide 12 months of Airbnb or VRBO income history, or a third-party rent projection from a service like AirDNA. Short-term rental DSCR loans may have slightly different underwriting criteria than traditional long-term rental loans.
What is the maximum number of properties I can finance?
There is no limit on the number of DSCR loans you can have. Unlike conventional mortgages, which typically cap at 10 financed properties, DSCR loans have no portfolio cap. This makes them ideal for investors scaling a rental portfolio.
Can I do a cash-out refinance with a DSCR loan?
Yes. Cash-out refinances are available up to 75% LTV on most DSCR products. This is a popular strategy for investors who purchase properties with cash or hard money, renovate them, stabilize with a tenant, and then refinance into a 30-year DSCR loan — pulling out their initial capital to recycle into the next deal (the BRRRR strategy).
What credit score do I need for a DSCR loan?
Most DSCR programs require a minimum credit score of 660, with the best rates available at 720+. Select programs are available for borrowers with scores as low as 620, though these typically come with higher rates and lower maximum LTV.